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see you tomorrow. it captioned by closed captioning services, inc >> bret: the president meets with congressional leader over what to do about the debt ceiling. he promises to work through the weekenand cites progress. michele bachmann push to win the iowa caucuses. who knew what when in the gun running operation fast and furious? congressman michael eisner joins us with new details. live from the studio in washington, this is "special report." good evening. i'm bret baier. president obama says the two sides haggling over the debt ceiling are still far apart but they are talking. he made the comments following a meeting with congressional leaders at the white house today and said another one is on the calendar for sunday. senior white house foreign affairs correspondent wendell goler has specifics. >> reporter: after an hour-and-a-half long meeting with the leaders of the house and senate, president said each side is jockeying for position and told reporters they will meet again sunday hopefully ready to deal. >> at that point, the parties
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will at least know where each other's bottom lines are. and will hopefully be in a position to then start engaging in the hard bar goning necessary to get a deal done. >> earlier in a picture-taking session before the meeting there was only small talk about the big sand storm in phoenix. colleagues say house speaker john boehner told us later there is an even chance there could be abagreement soon. >> there is substantial belief whatever is going to happen is likely to happen in the next few days. i for one spend wait and see what happens. >> senator blunt concedes that boehner is an optimist and the president admits both sides are far apart. there was ample evidence of that. reports that social security changes were discussed triggered complaint from democrats despite the white house assurance that benefits would not be cut. >> do not consider social security a piggy bank for getting tax cut to the wealthiest people in our
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country. >> republicans suggested tax savings should be used to other tax cut and not lower the deficit. some are reluctant to raise the debt ceiling. >> none of us want to raise the debt ceiling. up in of us think it's a good idea to spend money we don't have. it's a problem we have been doing it for so long. >> senator paul says the balanced budget would make him more comfortable with the debt ceiling hike but there is not enough time for that. one thing the white house says both sides agreed on today the august 2 is the deadline for increasing the government's ability to borrow. >> it's simply inescapable fact that on august 2, without a vote to raise the dealt ceiling, we will be in arrears. >> house democratic leader nancy pelosi says one bottom line issue she hopes is resolved sunday is whether the deficit cutting deal is over 10 years or 12. the president's $4 trillion proposal over a dozen years. the congressional budget says it's www.less, over ten. >> bret: much more on this
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with the panel later. in texas, several republicans and business opener suggested the phrase those who do not learn from history are doomed to repeat it may play now on taxes of luxuries of high-income earners. chief washington correspondent jim angle has the story. >> in the search for deficit reduction, democrats are determined to hit the wealthy in part changing taxes on bet and corporate jets. >> the owners of yacht and jets don't need special tax breaks that the rest of americans don't get. >> i rise in support of sense of senate on shared sacrifice. the clock is ticking. >> congress has already been down this road in 1990s. >> it had the luxury tax and watched as the workers and the luxury workers in the u.s. lost their jobs. a stupid idea. it will hurt blue collar america at the wrong time. >> in an effort to go after wealthy consumers, his blue collar producers make the corporate jet and other luxury goods. that's why the union
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representing aviation workers and neverrers asked president obama to back off to know avail. the lessons of the 'ed 90s clear. >> the u.s. spent more money on unemployment insurance for people who lost their jobs than it raised in revenue. because of that, congress repealeddite few years later. >> they overwhelmingly voted to repeal the taxes as they and president clinton were raising the income tax rate. at the time, the senate control finance committee acknowledged the impact of the taxes saying, "industries suffered job losses and increased unemployment." the committee believes it's appropriate to eliminate the burden they impose in interest of fostering economic recovery. an argument that could be made today. now the democrats propose another tax change that even the obama administration believes would endanger jobs involving accounting practice called lipo, the obama small business administration warn would result in tax increase for small business to force small businesses to close. they are by far the largest
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creators of new jobs. >> so that is going to reduce output, reduce gdp and call us jobs. >> unintended consequences like that are why some republicans say any deal needs to be closely scrutinized by lawmakers. >> do it in the light of day, not in secret behind closed door negotiations, only to spring it on the american people, saying it's this. take it or leave it or there is financial calamity. >> early 1990s offer good lesson in unintended consequences one that might be useful in the current debate. in washington, jim angle, fox news. >> first time request for unemployment benefit fell to the lowest level in seven weeks. the stocks were up. dow gained 93-1/2. s&p 500 added 14. the nasdaq finished ahead 42-2/3. fixed rate for 30-year mortgages went up by the most in four months. freddie mac says the new ample
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is 4.6%. they say they will require banks and brokers that participate in f.h.a. to extent forbearance to help them to delay foreclosure. move like this have come under criticism from some in the housing industry saying they prevent the market from hitting a bottom. ♪ ♪ >> bret: an aide to tim pawlenty apologized over a comment he made about michele bachmann. it's obviously very early, but the minnesota congresswoman appears that point in time to the only serious challenger to front-runner mitt romney. chief political correspondent carl cameron reports bachmann is taking another step to get an early win. >> reporter: trying to build on growing momentum in the polls, republican minnesota coveragewoman michele bachmann launched the first tv ad of her presidential campaign in iowa. home of the first caucus six
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month ago. >> i was born and raised in waterloo. >> reporter: her ad ran confirms a push to win iowa. with dominating performances at the fox debate and ames poll in iowa. it emphasizes her family value and fiscal conservative. >> we can't keep spending money we don't have. that's why i fought against the wasteful bail-out, against the stimulus. i will not vote to increase the debt ceiling. >> since joining the race three weeks ago, bachmann danced past most rivals to the top of the polls in iowa and solid second in new hampshire. the only other candidate running tv ad is tim pawlenty who is far back in the poll and held a town hall style meeting today. >> i hope you will join us our cause. the next step is august 13 at the ames straw poll. >> reporter: tim pawlenty and his aides downplay the expectation in iowa against bachmann's popularity. but when the action committee suggested that michele
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bachmann would be hard to beat as iowa native with home party feel, tea party favorite with ideological appeal and with added she has a little sex appeal, too. tim pawlenty condemned the remarks in a statement. "i don't believe he or anyone else should use as a reference someone east sex appeal to judge fitness or office or strength of the campaign. it was a wrong statement." webber apologized and said i made a mistake that was disrespectful to congresswoman michele bachmann. it was inappropriate and i'm sorry. webber spoke to bachmann today and she accepted the apology. but the team says they won't be dragged into a conversation about sex appeal. bachmann is concentrating op beating mitt romney. has little to gain in obtaining a rival far back in the poll as tim pawlenty right now. >> bret: top business leaders say proposal to streamline the union election could keep them from making case to employees. house committee heard arguments today on both sides
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of the issue. correspondent shannon bream has the story. >> we cannot sit by and become willing accomplicement in the job-destroying agenda. >> capitol hill republicans are pushing back against the national labor relations board proposal to change how the workplace unionization elections are held, by speeding up the timeline. supporters of the board proposal says the current system is long given unfair advantage to employers and it's time for a change. >> it takes 12 years to get a place unionized something is wrong. it's not leaning toward making the union stronger. [ applause ] >> the proposal from the current nrb board made up of three democrats and up with republican would require employers to provide personal contact information on workers including their e-mail addresses and phone numbers. larry gets, former worker says the officials never seem to
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need help tracking down workers. >> we found union officials waiting in the break room, they would approach us in lunch breaks and follow to us the vehicles and some to our homes. >> reporter: the big battle is occurring outside south carolina. boeing wants a new plant. lindsey graham says the issue should be a top priority for nip running in 2012, adding, "this is the worst model to create jobs in the u.s. shannon bream, fox nute. >> bret: the environmental protection agency has plan to reduce plants and will require them to slash pollution. critics say it's a step by the administration to crack down on the coal-fired power plants have we forgotten calls
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for more civility that came following the gabrielle giffords shooting? we will take a look later in the grapevine. first, we tell you why the white house wants to keep convicted murder from being put to
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>> bret: florida mom casey anthony will be set free next week. tuesday, she was acquited of murder and manslaughter charges in the death of her 2-year-old daughter. today she was sentenced to four years in prison for lying to investigators.
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but she has already spent nearly three years in jail and was also given credit for good behavior in texas, a mexican national convicted of murder and rain is scheduled for execution tonight. but the obama administration has asked the supreme court for a stay. correspondent kris gutierrez tells us why. >> it took a jury just 45 minutes to convict humberto real of brutally raping and killing 16-year-old adrian. her skull was crushed by a 35-pound piece of asphalt in 1998, leal was sentenced to death for the crime but it wasn't until he got to texas death row he learned he was entitled to legal advice from the mexican consulate through a 1963 u.n. treaty, which gives foreign nationals in foreign countries legal help through their consulates. leal now 38 years sold a mexican national who lived in the u.s. since he was two. the obama administration fears tonight's execution could do irreparable damage to u.s.
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-mexico relations and potentially put u.s. citizens at risk of similar treatment. >> we could face reciprocal denial of access for our consular officials when the american sits find themselves arrested or detained overseas. >> reporter: in 2005, the international court of justice, the legal body of the u.n. ruled the u.s. is bound by the treaty. but in 2008, the supreme court ruled only congress can force states to abide by the treaty. and now, three years later, a bill introduced in congress just last month by vermont senator bob ley would facilitate u.s. compliance of the treaty, but it's not up for a vote yet. the white house would like the supreme court to delay the execution for six months to give congress time to consider the legislation. texas governor rick perry's office released a statement that reads in part, "if you commit the most heinous of crimes in texas, you can expect to face the ultimate penalty under our laws. as in this case, where leal
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was convicted of raping and bludgeoning a 16-year-old girl to death." and we just learn the u.s. supreme court will not stop tonight's execution. in fact, the high court released a statement a short time ago saying in part, i'm quoting here, "we have no authority to stay an execution in light of an appeal of the president presenting free ranging assertion of foreign policy consequences when the assertions come unaccompanied by persuasive legal claim." i should also point out a source of mine in governor rick perry's office tells me the governor has no plans to stop the execution either. >> bret: breaking just a few minutes ago. thank you. joints chief of staff chairman admiral mike mullen has become the highest military officer to go on the record accusing iran of killing american troops in iran. mullen today supported allegations we've been telling you about that iran is shipping weapons to extremist shia groups and says forensics prove it. it has to be dealt with one of europe'smo popular
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newspapers is shutting down after 168 years over its involve in the a phone hacking scandal. the paper is owned by the parent company of fox news. senior foreign affairs correspondent amy kellogg has the story from london. >> the newspaper at the center of the storm will roll off the presses just one last time this sunday. the profits will go to good causes according to james murdock who runs the international side of the media group. the tabloid "news of the world" had one point had been the best selling english language pape over the world. until recently, the top sunday paper in britain. >> i feel regret. clearly practices of certain individuals did not live up to the standards and quality of journalism that we believe in, that i believe in. and that the company believes in. >> at issue, long-running phone hacking scandal in which the victims had been largely celebrities, but there was outrage when allegations merged that the paper hacked
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phones of school girl who had been abducted and ultimately killed. victim of the terror attack on london transport which happened six years ago today. prime minister david cameron, the former press secretary, former news of the world editor caught in the hacking scandal called for an injury. >> what this government is doing is making sure that the fact of the public and i feel so appalled by what has happened. murder victims, terrorist victims. who had their phone tapped is disgraceful. that is why it's important there is a full police investigation with all the powers that they need. >> reporter: there are also allegations that news of the world paid police for information. >> news corporation chairman and ceo rupert murdock wouldn't give comments to report whose pursued him as a conference in idaho but he issued statement calls it hacking and payment to police deplorable and unacceptable and he vowed that the company will cooperate with the investigation. scotland yard says it has a list of 4,000 potentially
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victims of phone hacking. there are fresh allegations that family member of war dead may have been among the target. james murdock in a statement earlier today says news of the world is in the business of holding others to account. but it fail when it came to itself. in london, amy kellogg, fox news. >> bret: still ahead, did the obama administration do an end-around a funding ban for a controversial group? we'll explain. but first, we will talk live with the congressman trying to get answers about operation fast and furious.
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>> bret: we've been telling you in recent days about a federal law enforcement operation that deliberately put guns in the hands of criminals. the guns ended up in mexico and were used in crimes there, including doesps of murders.
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allegation of multiple agency involvement, deliberate lack of communication and a coverup. the man who has been looking for answers in accountability for operation fast and furious is house oversight and government reform chairman michael eisner. he joins us live from th -- chan michael eisner. hdarrell issa. thank you for joining us. >> thank you for bringing light to this important issue. >> bret: according to a letter you and senator chuck grassley sent to the attorney general eric hold every it stated "the evidence we gathered raises the disturbing possibility that the justice department not only allowed criminals to smuggle weapons but that taxpayer dollars from other agencies may have financed those engaging in such activities." so from what you know, why was this operation launched in the first place? what was the goal? >> it depends on whose
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perspective you are looking at. if you're kennelson at the a.f.t., you're told this is way to follow the gunsed roll up bigger fish. if you are justice and can see other agencies, d.e.a. and know what they know, you know the name of bigger fish and you have paid informants as middlemen. that's where we discover that it was the u.s. dollars that at least some part was used to buy weapons. >> bret: there is no evidence of what you have seen. you have seen more than we have. a.t.f. was tracking the guns, that they were actually tracking them across the border. >> you are right. with only two exceptions where they put tracking devices on them, was there any physical tracking, in a few hours in one case at most. they watched them go into mexico but they didn't inform the mexican officials and they didn't have a team on the other side of the boarder to
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follow it. so at some point the signal disappeared. >> you says the a.t.f. has been muzzled and the d.o.j. sent over false denights and buried its head in the sand in the interview over the weekend, this is a quote just releaseleased from the transcrit from kenneth nelson who says, "tough agents who were involved in the case who didn't have bad mote is in doing this. they were trying to do what they thought was the right thing and guided by their supervisors." congressman, how high does this go? >> the highest level of justice. when i say that, lenny brewer area of justice that has to authorize wiretaps and ore activities. controlling a task force including d.e.a., f.b.i., element of the u.s. attorney office has to go to the top level of justice. we know it goes there. that is where we want answers. a.t. f., though a participant,
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was kept in the dark. >> bret: we had a picture of the assistant attorney general there were wiretaps involved in this case. do you think this went all the way to the attorney general? >> we have been told by the president and the attorney general they not only didn't authorize it, but in the case of the attorney general he claims he didn't know it till long after, frankly, justice claims i was briefed in a way i don't remember being briefed and neither was anybody nellis the room. we have an oddity that the attorney general knew or should have known long before he says he did. when he sends this letter, months go by before he says he knew of the program. it doesn't make sense to us to have a seep your senator get a letter rebuffed and congressman sending over, a chairman sending over a number of inquirys and the attorney general says he wasn't aware of it at that time. we have our doubts. >> do you have indication that the motive was political in
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any way? there are allegations about, you know, gun control and efforts by the administration. do you have any allegation that's true? >> the allegation i can make, under george w. bush, u.s. attorneys were fired for not enforcing gun laws strictly enough. under this administration there seems to be a don't bother to enforce at all policy. so that disturbs us. there is less gun enforcement, illegal trans, a under administration that theoretically is more for gun control. george w. bush went out of his way to help the mexicans having a zero tolerance to illegal gun sales to end up in mexico. that should be answered by the administration. the bush policy should not have been reversed. >> bret: last thing, you mentioned confidential informant. are we to believe that they knew it was a gun runner and turned the other way on the incidents? >> i can't speak to the turn the other way with specificity.
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i can say they knew they had people who were participating in this and they did nothing to inform atf. that is disturbing that the agency we count on for gun and explosive protection was kept in the dark about these individuals. as by the way, were the a.t.f. agents in mexico city who were finding these weapons. and were unable to trace them back to the program. >> bret: quickly, only 15 seconds here, what is the next step? >> the next step we follow the evidence where it leads, whistle blowers and confidential informants if you will within justice coming to us. we're not getting real discovery from the administration. they are sending us sheets of paper that all black from where they have been redacted. yes, hope to get more information. administration decides coming clean is better than slow-rolling the discovery we're getting. >> bret: thank you for your time. keep us apprised. >> we will. >> bret: another gun crime was supposed to inspire
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greater stability in public discourse. we'll see how it is going. with president obama get the same@@
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i will reconvene congressional leaders here on sunday with the expectation that at that point the parties will at least know where each other's bottom lines are.
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and will hopefully be in a position to then start engaging in the hard bargaining that is necessary to get a deal done. i want to emphasize that nothing is agreed to until everything is agreed to. the parties are still far apart on a wide range of issues. >> bret: after an hour-and-a-half long meeting at the white house today with democratic and republican congressional leaders, president obama will call them back for a meeting op sunday. the staffs will work on some specifics. as far as trying to get a deal done. house speaker john boehner put the chances at 50/50. other republicans say that boehner is an optimist. where are we? bring in the panel. bill kristol, stand stand. january williams, the hill. sindcated columnist charles krauthammer. bill, where is this headed? >> it sounds like they're heading toward a deal. not a deal i'm going to like, and think i it's bad for conservative and republican bus i think they're intimidated.
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the president is going around talking about the rich, the sky will fall unless republicans cave. they're ready to cave in a big way on sunday. >> bret: house minority leader nancy pelosi will meet with the president op friday there are obviously significant pushback from the left as well. today. >> huge pushback, not only from nancy pelosi and the house democrats but from every liberal organization in washington has be filling up the inbox with complaints about the idea first and foremost that the democrats are spineless and going to give up medicare as an issue that has in fact vaulted more democrats. they're all referring to new york 26. the special election that took place, where a republican district, the republicans were unable to hold the seat because of the medicare issue. >> bret: you are talking about a political issue, not a solution. >> we're talking politics here. they're saying the special interest group, democrats on
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the house and pelosi herself you are giving up a major political weapon by simply creeding the idea that republicans will make cut in entitlement spending and focus on the idea that republicans will be the ones who are willing to tax the wealthy in the country, which is overwhelmingly popular idea with the voters. >> bret: you couldn't tax your way out of it until dealing with entitlement with both sides. >> correct. but other side, why do you have to deal with this as the president said with a gun to your head given the debt limit dead line of august 2? that the larger entitlement discussion should take police subsequent to this, not a the moment when you are trying to cut a deal. >> bret: that is a phoneny argument. all you have to do is extent debt limit. what do you have to negotiate? august 2 is not a number handed down in the bible. it's a flexible one. if you want to extent it, you can have a chat over it at that date. all of this idea that the liberals in a frenzy and
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pushing back on what? what has obama auvreed in entitlement? i know it's in the headline and heavily leaked inned a vance of this meeting today. i know it's what obama wants. everybody to think. he is prepared to be the grand, the national savior, the compromiser who does all of this. but what exactly is on the table? there was one mention in a up in of agreeing to a change in the indexing of inflation. this is ideologically neutral idea that has been around forever. that economists left, right and center have all agreed on that the current cpi overestimates inflation so it's not, it's not an issue that left and right ought to argue about. it's simply correcting an ror in arithmetic. so what else is is there? i would say if obama wants to show he is serious about entitlement, he needs to offer structural change, let's say in medicare
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there is rumor that it will be means testing; meaning, the rich will pay more and the elderly poor will pay less, which is imminently reasonable. why would a liberal resist that? isn't that what liberals are arguing for fairness in having the rich contribute more? so it would seem like to me to be ide logically neutral. >> bret: to juan's point it's purely political. they don't want to lose the issue. >> that is right. that is where i think it's all about cynical aperiences. and pretense. until you see something on the table that is real. all of this is shadows, of what obama appears as the great uniter. >> bret: bill, the president has said he wants to cut $4 trillion from the deficit. he used that number multiple times now. today, the white house cop seeded that it is -- concedeed it's $4 trillion over 12 years, not the usual ten years. so the c.b.o., the congressional budget office
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says it's only $2.5 trillion over ten years. a little in the weeds there but you are back-ending a lot of the cutting. >> republicans made the point instead of engaging in closed door negotiations with president obama which legitimates his claims. he told the public on fox news sunday, we weren't sent here. do it in light of day not in secret closed door negotiation. this is what i'm afraid the republicans are signing on to. there will be phony spending cuts. on medicaid if there were structural reform, that would be one thing. we'd just squeeze providers more to make medicare worse as a system. huge defense cuts. the number today was $600 billion, which the republicans did not knock down. there will be tax increases. we have the republican house, and they are going to agree to the huge defense cuts. tax increases. >> revenue. >> phony spending cut and increased debt. there would be a huge rebellion among conservatives if the republicans sign on the deal.
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>> bret: bottom line, deal whatever it is, behind closed doors has to pass the house and senate. >> it's doubtful that the deal sketch out, the way it's sketched out in general i doubt it gets much republican support in the house. we'll see. the leadership will say you have to go for it and it will be a fight among republicans! that is a circular shooting squad for republicans. talk about taking out boehner and mcconnell and people making a deal. those are your leaders. >> if you don't have a structural change in any of the entitlement, for example you sink ro mize the retirement age, eligibility age of medicare with the age for social security, the medicare age is inexplicably lower. if you so something like that and index that age to longevity, that is a real change. otherwise smoke and mirrors. >> bret: senate minorly leader is on "fox news sunday."
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i'm sitting in for chris. next up, look at michele bach
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finally tonight. the jury now being selected for the trial of baseball legend roger clemens. he is charged with lying to congress on whether he took performance enhancing drugs such as steroids. one study suggests his image could affect the jury. >> danielle snotting ham >> thanks for inviting us into your home tonight. that is it for this special

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Special Report With Bret Baier
FOX News July 8, 2011 4:00am-5:00am EDT

News/Business. Bret Baier. (2011)

TOPIC FREQUENCY Us 15, U.s. 12, Iowa 6, Texas 5, Bachmann 5, Michele Bachmann 4, Mexico 4, Washington 4, Tim Pawlenty 4, Boehner 3, Nancy Pelosi 3, Obama 3, Obama Administration 3, London 3, U.n. 2, John Boehner 2, Michael Eisner 2, George W. Bush 2, Jim 2, Rick Perry 2
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